We are quite sure that upon shipments of newspapers for the average distance of 80 miles, delivered to waiting trains at point of origin and called for at point of destination, the Government would make a handsome profit at 1 cent per pound. Chairman Wolcott, in 1899, said there would be a profit on such shipments for a distance of 300 miles. The slightest inquiry would have shown the postal officials that daily newspapers have insignificant circulations beyond the 150-mile zone. At that distance local papers have the call. On the other hand, magazines weighing as much as 22 ounces per copy are not concentrated in any one section. They are diffused over large areas, and their average hauls in the mails are larger because they can take advantage of express rates for short hauls and they can turn into the mails only that traffic which express companies will not carry for less than 1 cent per pound.

Newspapers differ from magazines in this, that they can not delay their shipments to take advantage of all the conditions which express companies may offer. They must go in the first train to preserve the value of their shipment.

UNITED STATES PRINTS 60 PER CENT OF ALL PERIODICALS ISSUED.

Within the last twenty years this Nation has turned from books to periodicals; we have fallen to the bottom of the list of nations in the number of books published per million of population, but we publish 60 per cent of all the periodicals on the globe. Cheap periodicals, padded with all sorts of advertising" weeds of literature," as they have been described-have fastened themselves upon the postal service at the rate of 10 a day for a period of ten years, or 40,000 in all. Eight hundred and eighty-four publications are entered at the New York Post-Office as entitled to second-class privileges, and there are 9,700 offices at which second-class publications are entered.

1,550 NEWSPAPERS PRINT DAILY NEWS OUT OF A TOTAL OF 22,392

SO-CALLED NEWSPAPERS.

We are not sure that the Department books disclose the number of daily newspapers entered on the second-class list. We understand there are over 22,392, divided as follows:

But there are not more than 1,550 daily newspapers which actually obtain the current news-725 through the Associated Press, 525 through the Publishers' Press, and 300 through the American Press Association. One concern in New York furnishes patent insides to 4,608 publications with an average circulation of 800 per week, and another concern furnishes plate matter to 10,000 publications. Three carloads of second-class mail matter are shipped out of Augusta, Me., every twenty-four hours, a special extra train relieving the congestion of the outgoing mail. It is true that no one has yet accurately defined what is a newspaper, nor has anyone determined the grade of distinction which draws the line wherein a newspaper does not become an advertising sheet; nevertheless, we are entitled to intelligent and

available information instead of misleading guesses. If you ascertain the total number of publications entered in the second-class we are confident the figures will surprise you.

Answering the Commission's questions we are prepared to present reasons why there should not be a disturbance of the existing rates so far as they apply to daily newspapers, and we are confident that you will have no serious thought of raising the rate upon them.

We entirely sympathize with those Department heads who find that mail-order publications and unworthy advertising periodicals masquerading under the guise of religion or education or patriotism have swamped the mails.

We think that weekly publications which have undue advantages in the mails and those which are "county free" should be forced to contribute equitably toward the expenses of the service.

We think you should stop the use of premium schemes by newspapers, the lavish distribution of sample copies, and the shipment of papers after subscriptions have expired.

We think the second-class rate should be restricted to the dissemination of public information, and that its employment primarily for mercantile purposes should be stopped.

The present law was made on the theory that the intelligent citizen is the best citizen. The value of the newspaper in our scheme of government can not be overestimated. It was exalted by Jefferson as the most powerful factor in the maintenance of order and in the preservation of liberties. News of official action is promptly given to all the people, and that assurance of full knowledge makes for peace and for the same consideration of public questions.

DELIVERING MAIL AT THE DOORS OF FIFTY-ONE MILLIONS.

The figures of 1901 show that the Post-Office was then carrying mail to the doors of 31.000.000 of population, and the task which was then outlined contemplated the personal and daily delivery of mail to the doors of the isolated farm houses for an additional population of 20,000.000, occupying an area of 1,000,000 square miles, at an annual cost of $14.000.000. But as the cost of rural free delivery has now reached $28,000,000 per annum, it is assumed that we are carrying mail to the doors of many more than 51,000,000 of the population, and this is done upon the idea that the great body of the people who live outside the cities and towns are entitled to share in advanced mail facilities even if the cost exceeds the returns. According to the Department reports, the establishment of rural free delivery has increased the value of farms to the extent of at least 5 per cent, and the appreciation in remote cities in Territories has been much greater. Delivery routes can only be established where roads are good, and in this respect a wonderful stimulus has been given to road improvement; in fact, a greater stimulus than would have been possible by a direct appropriation from the Government. The rural free delivery service has enabled the farmer to keep abreast with the world through the receipt of his newspaper and correspondence. The advantage which he has taken of that opportunity is shown in the fact that he receives three times as many newspapers as letters. A rough estimate of rural free delivery shows that in 1903 it cost about 4 cents per pound of mail delivered.

DEFICITS FROM RURAL FREE DELIVERY ANTICIPATED.

Postmaster-General Payne anticipated that the rapid extension of the rural free delivery service would increase the deficits for a period of at least three years. The post-office report for 1904 points out that the increase in the expenditures on account of rural free delivery service for each year had approximated the increase in the deficiency of postal revenue for each of those years. But for this extraordinary expenditure the service would have been self-sustaining.

Postmaster-General Payne, with broad view, declared that the postal deficits were not to be viewed with apprehension. Whenever the postal receipts exceed or come near the expenditures, it has been the policy of the Government to extend the postal facilities and to cheapen the cost of the service to the public, thereby aiding business and promoting the exchange of personal communication.

The progressive policy of the service has been pursued without reference to the question whether or not it paid the Government.

The spread of newspapers has increased the postal receipts on first, third, and fourth-class matter. Anything which increases the facility for communication is helpful to the country, expanding the area of development, promoting intelligence, uplifting the individual, and raising the standard of citizenship.

ESTIMATED LOSSES OF FORTY-FIVE MILLIONS OUTSIDE OF SECOND CLASS.

It is probably true that the rapid extension of the rural free delivery system has produced a minimum loss of $20,000,000 per annum, and it may be that the figures to be produced in January next will show that the abuses of the franking system and penalty envelope now exceed Congressman Bingham's estimate made in 1900 of an annual loss of $19,000,000. We have been unable to discover any data which would give a measure of the loss annually incurred in star-route transportation, for which over $7,000,000 is appropriated, but we do know that the cost per mile traveled has almost doubled because of the institution of box-delivery service on star routes, and the requirement that the bidder must live along the route. We are also unable to compute the loss due to free county distribution or to the privileges of carrier delivery enjoyed by weekly newspapers in city of publication.

The post-office report for 1902 tells us that the money-order business was then run at a loss of half a million dollars per annum. All of the causes here enumerated outside of the second class may have produced a loss of $45,000,000 per annum. Nevertheless there are gleams of comfort in the reports furnished by the Department.

A CHEERFUL SITUATION.

The situation is not so bad as appears at first glance. The country is growing with amazing rapidity. The revenues of each year are always more than enough to pay the expenses of the previous year, so that you can put an end to deficits if you stop the increase in expenditures. Our receipts are bounding at the rate of $12,000,000 per annum increase.

Comparison with other countries is not necessarily to the disadvantage of our postal system. Great Britain makes a profit of $22,000,000 per annum on its postal service, and it serves a territory of 120,000 square miles, while the mail routes in the United States serve an area of 3,000,000 square miles, or twenty-five times that of Great Britain. The railway routes in Great Britain measure 20,000 miles, while those of the United States are over 200,000 miles, in addition to 218,000 miles of star-route service and 66,000 miles of other service.

The mileage of our mail cars is thirty-three times greater than that of Great Britain, where there is a population of 331 to the mile, against 27 in the United States.

Great Britain paid $8,839,510 in 1898 for transportation over 20,000 miles, whereas the United States paid $34,703,000 for transportation over 170,000 miles, and in 1905 the United States paid over $52,000,000 for transportation and $71,000,000 for all forms of transportation. Great Britain paid $441 to the mile for transporting the mails. We paid $198 to the mile for transporting mails.

COMPARISONS WITH OTHER COUNTRIES.

Great Britain includes a parcel post in its operation; we do not. In Great Britain the largest run is 400 miles; in the United States it is 3,500 miles. Further, the United States has 15 times as many postal cars as Great Britain, and 85 per cent of our distribution is done on postal cars. England carries newspapers only in its second class. We estimate on insufficient data that in the United States the daily newspapers furnish about one-fifth or one-seventh of the second class.

Germany and France are so bound up in ownership or guarantee of bonds of railroads that comparison with them is impossible. It is doubtful if they pay anything for transportation, whereas the United States pays over $50,000,000 per annum.

Our railway-mail routes measure three times as much as the second country in mileage (Germany). In that country the domestic letter rate is 2 cents per half ounce, and 5 cents over one-half ounce; postal cards, 14 cents. In France and Germany the domestic rates on letters are higher. In Great Britain the letter rate is the same as in the United States, but the distances are very much shorter. The British rate for postal cards is 14 cents for a heavy one to suit the class and a half-penny card to suit the masses. For the same population in an equal area in the United States our profits would exceed those of Great Britain, so that there is no evidence of inefficiency in such a comparison. A writer has said: "Americans must be content to pay something for the privilege of living in their vast country." Then, too, the number of articles delivered to each inhabitant of the United States is greater than that of any other country.

FEATURES OF RAILWAY-MAIL SERVICE.

We have as many as 182 trains daily carrying mails between two cities (New York and Philadelphia); we have nine deliveries by carriers per day in some localities.

We have trains carrying mails at an average speed of 50 miles per hour for a distance of 900 miles. We have elaborate up-to-date postal cars weighing 50 tons.

The sorting of our mails on trains gives us a gain in time which much more than offsets any deficits.

Taken as a whole, the United States postal service is admirable and efficient. The constant effort is to improve, enlarge, and extend. The immense growth of business, the increase and spread of population have been helped by the expedition of the postal service. It is obvious that the increase in volume and in the transportation of mails must be reflected in an increase of the compensation paid by the Government to the railroads. We do not assume to pass upon the adequacy of the sums paid to railroads, but we do know that the railroads in this vicinity furnish postal cars of latest model as to safety and luxury; that the trains are run specially and often exclusively to carry the mails; that the Government obtains other valuable facilities, services, and accommodations; that it demands the right of way for mail transportation over all other trains; that mail matter must go on the fastest trains; that mail matter must be carried on every train the post-oflice may select, and no mail can be left behind. It has become evident that density of traffic or volume of business has not brought economies, but has increased the demand for facilities, so that most of the mail is now distributed in transit, and when it reaches the local offices comparatively little work is to be done. This sorting in transit increases the demand for car space and decreases the quantity of mail to be carried per car.

In view of the inquiries addressed to us by the Commission and the tone of the circular sent out by it, which may be unintentionally hostile, we are not safe in assuming that this inquiry can be treated lightly, nor can the daily newspapers assume that your questions are not asked with a serious purpose.

ASSERTIONS OF WHICH WE COMPLAIN.

Public officials have declared "it is impossible to carry at a profit matter paying 1 cent a pound."

One chief of department has said "that people are taxed fourfifths of the cost of transporting the second-class matter."

Again he has referred to the mail privilege as "a bounty," "a subsidy," "a gratuity." He has referred to "the extremely favored rates" to newspapers and to the fact that "the people are so heavily taxed," adding "the law is liberal." All of which we brand as ungracious and untrue so far as it applies to daily newspapers. To the credit of ex-Postmaster-General Smith, it can be said that while he was foremost in condemning the abuses of second-class mail, he invariably discriminated and exempted the daily newspapers from blame. Express officials advised the Commission of 1898 that the rate for second-class matter should be raised, and the purpose was evident. The 1 cent a pound has frightened every PostmasterGeneral during the last fifteen years. Therefore we are not justified in assuming that there is no present intention to injure bona fide daily newspapers. We are bound in good faith and in obedience to your summons to present our case fully and freely.